Auditable because all the operations on the blocks in the blockchain, such as adding transactions to the block and voting, counting, and sealing the blocks require that the nodes sign the relevant parts of the block with their secret. Thus, every operation leaves accessor's signature in the block, so every operation is automatically audited. Auditability improves security of the blockchain and resists long range and other types of attacks.

Note: Storecoin is a public blockchain, not an ERC20 token.STORE will be a hybrid Currency and Platform token.

Get invited to the third, private Token Event

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Welcome to the private, invite-only Second Token Sale for Storecoin #💰

Please take three minutes to apply.

All information will remain confidential with Storecoin, Inc.

Invites will be sent starting in late December 2017.

Are you a resident of the People's Republic of China?

Yes

No

Before you begin, we recommend that you read the latest SEC investor bulletin about buying Blockchain Tokens or App Coins.

As of September 4, 2017, we have concluded that, due to the changing regulatory environment in the People's Republic of China with respect to the distribution of cryptographic tokens generally, Storecoin will not sell tokens to residents of the People's Republic of China.

Although:

a) Storecoin Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the People's Republic of China (as amended).

b) The distribution of the Storecoin Tokens are not considered “illegal fundraising” as defined under the Criminal Law of the People's Republic of China (as amended).

c) Storecoin will comply with the amended Securities Law of China and prohibit residents of the PRC from purchasing Storecoin tokens. If a Chinese person does apply to purchase Storecoin Tokens, such person will not be approved by Storecoin, Inc.

If you are not a resident of the People's Republic of China, we encourage you to re-start the Second Token Sale invite process.

Please read the following before applying for our Second Token Sale:

#1 As a potential Storecoin Token Buyer, I understand that the purpose of the storecoins is to facilitate the provision, utility, and receipt of certain apps and services within a future Storecoin Blockchain.

#2 I understand that my purchase, ownership, receipt, or possession of Storecoin Tokens carry no rights, express or implied, other than the right to use Tokens as a means to enable usage of and interaction with Apps and Services enabled by the Storecoin blockchain, if successfully completed and deployed.

#3 I understand and accept that Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to a Storecoin blockchain, Storecoin, Inc, and its corporate affiliates, other than any rights relating to the provision and receipt of Services in the Storecoin blockchain or Storecoin app token.

#4 I also understand the Tokens are not intended to be a security, commodity, or any kind of financial instrument.

About Storecoin

Storecoin is a new public blockchain.

With its Dynamic Proof of Stake consensus protocol (DyPoS), Storecoin will deliver free transactions, high-throughput, dynamic economics, decentralized security, and a governance system with built-in checks and balances inspired by the United States Constitution.

Storecoin will become the best digital asset for delivering free, fast, and scalable payments.

Our team has the key insights and experiences in scaling large distributed systems, blockchain technology, token economics, and Governance to succeed.

We have offices in Silicon Valley, South America, Europe, and Asia. We have team members working 24-hours per day, all around the globe.

About Dynamic Proof of Stake

Dynamic Proof of Stake (DyPoS) is the decentralized consensus algorithm invented by Storecoin Inc. to keep transactions free for users.

DyPoS is inspired by the supply and demand principles of Uber Surge Pricing (blockchain economics), checks and balances of the U.S. Constitution (governance), and an encrypted Power of Attorney (scaling).

With DyPoS, Storecoin will bring crypto-powered API calls to app developers around the world.

Dynamic (free) Transactions

Dynamic Validation

Dynamic Block Rewards

Dynamic Security

Dynamic Scaling

Dynamic Governance

We’ve thought deeply about how to incentivize network effects on a new blockchain.

Here’s how Storecoins will be allocated:

33% will be sold in up to six mini token sales to fund protocol development

7% was sold in our First Token Sale in Fall 2017

33% will be allocated to founders and team

Founders have 4 year vesting

Contributors have 2 year vesting

33% will be allocated to incentivize participation in the Storecoin ecosystem

This includes third party developers for the Storecoin blockchain, enterprise organizations who adopt the Storecoin Wallet and integrate storecoin tokens into their enterprise apps, early Validators, early Security Guards, Distribution partners, and future M&A

All incentive-based partners have 4 year vesting

Validators of the Storecoin blockchain have 1 year vesting for their block rewards

Storecoin will only sale up 33% of tokens to the public.

In our Invite-only First Token Sale, 70 Million storecoins, or 7% of all tokens, were sold.

In our Second Token Sale, 30 Million storecoins, or 3% of all tokens total, will be sold to invited and approved buyers. The price per token is $0.0333. Invites to participate will be sent starting December 2017.

Our Second Token Sale will give Storecoin $1 Million in capital to make key hires in blockchain engineering and blockchain security. This enables the project to finish its test network for Dynamic Scaling, Dynamic Validation, and Dynamic (Free Transactions). The output of this sale will be Storecoin releasing its Scaling Paper and its Economics Paper.

Storecoin Token Buyers will receive their tokens as early as 2019.

Storecoin, Inc. will issue buyers either:

ERC20 tokens (that may convert into Storecoin blockchain tokens in the future)

Tokens from the Storecoin blockchain

Tokens from another blockchain such as EOS

The minimum purchase amount in our Second Token Sale is $5,000 USD.

You can buy storecoins through USD Check, USD Wire, Bitcoin and Ethereum.

As of today, this $5,000 USD minimum Storecoin token buy equals:

Ethereum

Bitcoin

Storecoin vs. Other Public Blockchains

What it would cost to buy 1 one-hundredth of a percent (1 basis point) of all tokens minted in the first 10 years for major public blockchains (see footnotes for price assumptions).

The ZCash price of $529 is a snapshot of the price as of December 17th, 2017. The "Filecoin (first hour)" price of $2.25 factors in a 15% discount off of $2.65 (the price during the first hour of the sale) as a result of the 2-year unlocking option. The Tezos price of $0.39 is the effective price paid on the first day of the main sale, taking into account the 20% bonus and an average Bitcoin price of $2,350 on July 1. The EOS price of $8.44 is based on the pre-launch trading price on December 17th, 2017. EOS was assumed to have 5% annual inflation starting at 1 billion tokens.

Do you want to participate in the Storecoin Second Token Sale?

Yes

No

Will you be participating on behalf of yourself or another organization/entity?

As a future Storecoin token owner, would you be interested in earning extra storecoins by staking your tokens for 3+ months to help Validate our future decentralized blockchain consensus? This would make you a founding Validator (miner) for Storecoin. After six months of actively validating, you'd have a vote in Governance, too. You can also apply directly here.

Yes

No

Maybe, send me more information

As a future Storecoin token owner, would you be interested in earning storecoins by helping Secure our blockchain? This would make you a founding Decentralized Security Guard (dGuard). After three months of actively Securing, you'd have a vote in Governance, too. Requirements are experiences in fraud detection, information security, and related fields. You can also apply directly here.

Yes

No

Maybe, send me more information

Thanks for applying to participate in the Storecoin Second Token Sale.

Our team will review your application. Once approved, we'll email you a Token Sale agreement to e-sign and then fund. You'll have 48 hours to fund the contract before your invite expires.

Digital constitutions are tricky. This is exactly why the US has judicial system - to interpret the constitution. All of this makes me increasingly bullish on long term prospects for@storecoin - modelling governance after US checks and balancespic.twitter.com/Z0ecNXAXy1

DISCLAIMER

Storecoin's data is based upon internal research materially as describedhere andhere. Storecoin does not assure that performance of Storecoin in a real-world use case would match performance exhibited in Storecoin’s research. All other data sourced as provided without further analysis or verification by Storecoin. Comparisons between Storecoin and other identified distributed ledger technology may not be based upon uniform testing standards and procedures.

Nothing herein is intended to be an offer to sell or solicitation of offer to buy, Storecoin tokens or rights to receive Storecoin tokens in the future. In the event that Storecoin conducts an offering of Storecoin tokens (or rights to receive Storecoin tokens in the future), Storecoin will do so in compliance with all applicable laws which may include the Securities Act of 1933 and the rules and regulations promulgated thereunder, as well as applicable state and foreign law. Any offering for sale to US Persons in a regulated transaction will be pursuant to a registration statement qualified by the Securities and Exchange Commission, or an applicable exemption from the registration requirements.

Storecoin aims to become the preferred cryptocurrency for permanently free, fast and scalable payments.

Our Team

We have been thinking very long-term about the potential for zero fee, programmable payments.

Chris McCoyFULL-TIME

Creator

15 years experience building internet and blockchain-based technologies. Chairman at Footprint, tools for blockchain ecosystems. Member of Blockchain Initiative at the World Economic Forum's Fourth Industrial Center. Founded the non-profit Data4America. Invented YourSports.

Rag BhagavathaFULL-TIME

Chief Technology Officer

Over two decades of building distributed messaging, social networking, and database technologies. Has been working with Storecoin Creator Chris McCoy since 2011. Previous Cloud Infrastructure Engineer @Apple (2011-2012), Frontend Architecture @Cisco WebEx (2006-2011).

Stephen McKeon

Cryptoeconomics Advisor

Antone Johnson

General Counsel

20 years experience as business and technology lawyer, startup advisor, and executive. Antone previously served as VP of global legal affairs at eHarmony and practiced corporate law at Wilson Sonsini Goodrich & Rosati (WSGR).

Our Mission

To become a zero-fee, programmable cryptocurrency that can compete with VISA-like networks and beyond

Click to expand

The Case for Zero Fee, Programmable Payments

Since the first ever digital transaction Western Union in 1921, digital payment innovation has grown the possibilities of of commerce and trade.

From merchant card networks like VISA (1958), to online banking and bill pay (1994), to mobile WAP payments (1997), to the current wave of mobile payment apps, digital transactions have expanded global commerce and trade.

Digital transactions aren't free though! Fees create friction in usability and adoption, limit the potential of micropayments, and are ultimately a tax on consumers, merchants and developers - the demand-side for payments and currency adoption.

Who earns the fees? The supply-side banks and FinTech companies , of course! Collectively, they share a cut of digital payments, earning +$0.10 plus another +1.51% per transaction.

ACQUIRERS/ PROCESSORS

CARD NETWORKS

BANK/ ISSUES

GATEWAYS

*chart from Business Insider

Consumers, merchants, and developers pay A LOT in fees. If this money went into their pockets instead of to banks and FinTech, trade and commerce may increase further – faster.

What about public blockchains which produce a new, censorship resistant, decentralized, and programmable form of money called cryptocurrency?

Major blockchains of today are not zero-fee for consumers, merchants, or developers either!

PUBLIC BLOCKCHAINS

Bitcoin (BTC)

Ethereum (ETH)

Dash (DASH)

EOS (EOS)

Tezos (XTZ)

FEES PER TRANSACTION

$0.40 to $4.00+

$0.16 to $0.33+

$0.39 to $0.58+

Zero-fee for users but not for Developers or Merchants

Fees, but undetermined

* Data updated as of March 2018

While blockchain-based payments *can* exponentially expand the way we trade, what we trade, and the amounts we trade – including operations by robots, machines and IoT – until transactions are zero-fee for demand side users, the potential of this technology may not be reached.

The Storecoin blockchain exists to make p2p payments zero-fee, highly programmable, and near-instant. First inside of apps smart contracts and dApps the cash register and beyond.

We’re on a journey to expand global commerce and trade – one zero-fee transaction at a time.

Major Milestones

April 2018

Storecoin’s BlockFin consensus algorithm becomes patent-pending

The purpose of seeking patents is to protect the blockchain against malicious hard forks outside of its Governance

March 2018

Storecoin achieves 10,000+ Transactions per Second (TPS) in a 21-validator node set-up and 159,000+ TPS in an 8-node setup

Storecoin’s legal team builds a KYC/AML and Global Securities Law compliant plan to grow the project to +21,000 wallets before public launch

Storecoin

It is permissionless to perform work for the protocol but KYC/AML data is required for all types of decentralized workers; this enables future global KYC/AML compliance

achieves censorship resistance because of the growing number of decentralized workers securing the protocol; rewards for workers grow as the number of workers grows; rewards are paid through new token inflation capped at 6%

The Storecoin Ecosystem Fund launches

Key patents are secured to protect against malicious hard forks outside of Governance

A secure engineering and CI/CD process is built to protect private keys from theft by any and all project contributors

Wallet Released

Wallet distributes private keys

Private keys distributed to owners

FEE-LESS, P2P PAYMENTS

Storecoin Growth

Up to 20,000 validator node participation

50,000+ transactions per second

Once a threshold of 220 validators are reached, Decentralized Security Guard nodes (dGuards) are added to find bad actors throughout the protocol

Smart contracts enable a new decentralized worker called the sAgent to reach consensus on global Chargeback cases where is used

Global KYC/AML Compliance

KYC and AML checks are compliant with the laws and national security demands of 190+ countries; this logic is hard coded into all decentralized worker nodes

If the laws of country X prevent transactions from being processed by decentralized nodes in country Y, the Storecoin protocol will support this natively, on chain

A long-term, security-first approach to building globally compliant infrastructure for zero-fee, p2p payments will give Storecoin developers the best opportunity to be embedded into banking and financial infrastructure around the globe.

DECENTRALIZED APPS(dApps)

Long-Term Treasury Plan

How Storecoin will incentivize all sides of its network across multiple, milestone-based token-generating events ultimately giving it a Treasury and Governance that lets it operate on a +thousand-year, very long term time horizon.

Why Fork Tolerance Matters

In the late 1860’s, gasoline was a waste product thrown into rivers and fields by the oil refineries. It was John Rockefeller’s Standard Oil that invented a way to refine the waste and turn it into gasoline. This invention gave rise to the automobile industry and beyond.

Today, public blockchains have their own waste: chain forks. Since the longest chain wins in consensus, chain forks become wasted compute (and electricity). This results in lower transaction throughput.

How? BlockFin moves away from the “winning node creates the new block” paradigm to a new paradigm where all nodes assemble transactions into pre-created empty blocks while validating them in three, asynchronous stages. There are no chain forks in BlockFin because there is no “add-one-block-at-a-time” construct. New blocks are produced in a pipeline.

Storecoin calls this invention “fork-tolerant”.

Fork-tolerance is how Storecoin achieves high-throughput with true decentralization.

The 5 Principles of BlockFin

BlockFin allows the Storecoin blockchain to achieve high-throughput and true decentralization without the need for sharding, off chain transactions, level 2 scaling, etc.

1 Fork tolerant

Blocks are assembled in parallel because chain forks are not an issue. This results in high-throughput.

2 Auditable

Every read/write request is recorded with the accessor's signature, so all operations are auditable.

3 Leaderless

All validators participate in consensus – and are rewarded for it – resulting in a non-zero sum consensus.

4 Decentralized

Leaderless participation results in true decentralization as participants earn rewards for 100% of their work.

5 High-Throughput

Fork tolerance alleviates the need for a globally serialized process of new blocks. This improves throughput.

Life of a Storecoin Transaction with BlockFin

Key patents are being secured to protect against a malicious hard fork outside of Governance. Storecoin’s technology will otherwise be open-sourced to the public

#1 Alice installs Storecoin wallet and generates a secret key and public key pair for her

The Five Decentralized Workers of DyPoS

Decentralized Workers (dWorkers) earn Storecoin tokens as block rewards or interest for running various types of Storecoin nodes on their computers and/or phones to scale, secure, host, and govern the blockchain.

Click to expand

Expected tocome online

Q3-Q4 2019

Q3-Q4 2019

Once a throughput threshold for 300 Validators is reached

Once a security threshold for 220 Validators is reached

By 5/17/2021, four years after Storecoin was formed

The Six Engines Powering DyPoS

Dynamic Proof of Stake is made up of six interdependent engines.

Each engine is based on similar dynamic supply and demand principles as Uber Surge Pricing.

Dynamic (Zero Fee) Transactions

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 6%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. BlockFin is the only true decentralized consensus algorithm because of its leader/delegation-free consensus engine. Validators share block rewards proportional to their work done in the block validation process. This means every validator earns a reward for every block they help process. This is a breakthrough in the economics of consensus algorithms

Dynamic Block Rewards

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 6% pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 5%. Rewards are paid out as follows: 80% to process consensus and to scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 100% of the burnt stake of bond from the "bad" actors. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called, encrypted agent or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Dynamic (Zero Fee) Transactions

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 6%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. BlockFin is the only true decentralized consensus algorithm because of its leader/delegation-free consensus engine. Validators share block rewards proportional to their work done in the block validation process. This means every validator earns a reward for every block they help process. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 6% pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 5%. Rewards are paid out as follows: 80% to process consensus and to scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 100% of the burnt stake of bond from the "bad" actors. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called, encrypted agent or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 6%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. BlockFin is the only true decentralized consensus algorithm because of its leader/delegation-free consensus engine. Validators share block rewards proportional to their work done in the block validation process. This means every validator earns a reward for every block they help process. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 6% pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 5%. Rewards are paid out as follows: 80% to process consensus and to scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 100% of the burnt stake of bond from the "bad" actors. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called, encrypted agent or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Where Storecoin and our DyPoS algorithm fit in

The market of permissioned vs. permissionless consensus algorithms and blockchains

The economics of DyPoS

How Zero-Fee Transactions are Financed

Transactions are free for users and developers because they’re paid for with inflationary rewards capped at 6% per year. Award amounts are dynamic, based upon the total amount of staking amongst the decentralized workforce.

Click to expand

Staking incentivizes for decentralization and on-chain security

Click to expand

How Dynamic Block Rewards are Allocated

Decentralized Workers earn up to 6% inflationary block rewards to perform work and supply compute for the blockchain. Rewards are determined by the amount of staking from dWorkers. 80% of the block rewards are paid to process, store, and scale the blockchain; 20% is shared between security, governance, processing power, and core blockchain operations.

Click to expand

How Dynamic Inflation Works

Inflationary block rewards are capped at 6% per year, but the amounts awarded are dynamic and are based upon the total amount of staking amongst the decentralized workforce. In short, the more staking, the more block rewards for workers to earn. This approach incentivizes for maximum decentralization and protocol security, while keeping transactions zero-fee for users and developers across all programmable environments.

Dynamic Inflation Schedule

Staking From

Staking To

Inflationary Rewards

90%

100%

6.00%

80%

89.99%

5.80%

70%

79.99%

5.60%

60%

69.99%

5.40%

52.51%

59.99%

5.20%

51%

52.5%

5.00%

45%

50.99%

4.75%

40%

34.99%

4.50%

35%

39.99%

4.25%

30%

34.99%

4.00%

25%

29.99%

3.50%

20%

24.99%

3.00%

15%

14.99%

2.00%

10%

14.99%

1.50%

0%

9.99%

1.00%

Why is 51% important?

Protocols are in constant conflict of becoming a store of value (digital gold) vs. a medium of exchange (censorship resistant, programmable payments).

Store of Value (SoV) is important because it gives the Storecoin blockchain security through decentralized participation.

Medium of Exchange (MoE) is important because it gives Storecoin a demand-side use case: zero-fee payments for users and developers, across any programmable design space where the Storecoin blockchain supports APIs.

Recognizing this, Storecoin’s founding monetary policy incentivizes for an optimal 51% of the protocol to be staked in exchange for 5% inflationary rewards. This level of security is in line with the 59% of GDP spent by the U.S.A. to secure its dollar globally through legal, banking, and military infrastructure.

Note: Unlike The Federal Bank of the United States, Governance in Storecoin votes on monetary policy changes before they go into effect. This enables checks and balances for key economic decisions.

Interest payments incentivize for blockchain performance

Click to expand

All DyPoS economics will release in the Economics Paper

On-chain security and decentralization create value

How DyPoS is secured

The Network Effects of Dynamic Proof of Stake

The strength of Dynamic Proof of Stake is that it aligns the economic incentives of all stakeholders for more staking, therefore more worker participation, therefore more protocol decentralization, therefore more security.

The Storecoin Threat Level System

The Storecoin Threat Level System powers real-time market prices for the Six Engines of DyPoS. The System threat level algorithmically updates as transaction volumes rise and fall. As threat levels rise, the cost of spam and attacks rise too.

Severe

The network is under attack (DDoS, spam), a large volumes of incoming transactions, the number of validators online dropped below BFT threshold, and validator misbehavior is observed by dGuards during consensus

High

The nodes are reporting imminent attack (DDoS, spam), transaction volume is unusually large, number of validators online is nearing BFT threshold, and consensus rounds slow down due to disagreements

Elevated

Signs of attack (elevated number of invalid transactions), not all validators are currently online, and consensus rounds are repeated due to disagreements

Guarded

Unusual number of transactions and not all validators are currently online

Low

No known threats

The Cost of Cheating > Ever Winning

Storecoin’s BlockFin consensus protocol is Byzantine Fault Tolerant (BFT) and implements slashing (confiscating or burning the deposit) as a punitive measure for misbehaving entities in the system. As the Threat Levels increase, so do the prices for getting caught attacking the network or deviating from protocol. These dynamic Threat Levels ensure that the cost of getting caught will be greater than winning.

dGuards “find the rats” for Storecoin

Storecoin’s decentralized security guards (dGuards) patrol the network continuously and mitigate the chances of attackers winning. If dGuards reach consensus on an attack, they are rewarded with 100% of the burnt stake or burnt stake for all bad actors and/or transactions. Storecoin’s Security Branch makes the final determination on tickets filed by dGuards before punitive measures are taken.

How Dynamic Security Works(with dGuards)

Decentralized Security Guards, or dGuards, secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 100% of the burnt stake or bond from found "bad" actors.

Click to expand

How Zero Fee Transactions are Secured With Bonds

To prevent Storecoin from a DDoS attack or from the blockchain being flooded with spammy transactions, Storecoin adds a refundable – with interest! – security bond to each transaction.

Why Governance matters

Governance helped trade and commerce shape the world

Simply, Governance is a rules engine that enforces contracts and laws which in return injects trust into markets that require trust – markets like trade and commerce. History has shown us that as trust increases, the amount of trade and commerce increases too.

Click to expand

Blockchains Need Enterprise Grade Governance

For today’s public blockchains to move past prototypes and low usage dApps – to where entities trust a decentralized blockchain enough to process $10 Million+ of utility-based daily transaction volume in – blockchains need an enforceable rules engine that has no centralization of power, that key network participants trust, and that is censorship resistant.

To shape the future of trade and commerce, blockchains need an enterprise-grade Governance that is trusted, enforceable, and reaches finality in a democratic process.

Storecoin’s solution is a decentralized Governance where there is no centralization of power and all Changes are enforceable. Consensus on Change is reached by four separate branches that check and balance each other on protocol-level, key people, and monetary policy decisions.

The 10 Principles of Storecoin’s Governance

Storecoin’s Governance takes a system that has been vetted for hundreds of years – the U.S. Constitution – and removes most of the politics by replacing it with technology.

How Storecoin’s Governance compares

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How a checks and balances Governance works

The Four Branches of Storecoin Governance

Governance is inspired by the checks and balances of the United States Constitution. Storecoin’s Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval (there is no Fed).

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How Governance is Hired(and fired)

For the first four years – until 5/27/2021 – the Storecoin organization has executive power over the blockchain. After this launch date, Governance will vote on all protocol-level, key people, and monetary policy decisions.

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The Governance enables any issue to reach finality with consensus

How Every Storecoin Token Owner Can Create Change

(Democracy)

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The Constitution will release in its upcoming Governance Paper

How a censorship resistant Governance works

How Governance Would Look – if not censorship resistant

The centralized way, using an app hosted by a centralized entity

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How a Censorship Resistant Storecoin Governance Works

The decentralized way with a dApp hosted by Govnodes worldwide

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*Inspired by Angelo Milan’s work

How Storecoin incentivizes adoption

How trust in STORE grows STORE into new environments

(into new design spaces)

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The Network Effects of Storecoin and Trust

All money is trust, cryptocurrency included. Money works as a medium of exchange because people believe in it. If it won’t be accepted in a transaction, then it has no value. For cryptocurrency to develop trust, it needs to be used by people. TheWallet attempts to solve trust for the Storecoin cryptocurrency

Our Wallet-based Distribution Strategy

Storecoin will power a Wallet API for developers to integrate storecoin tokens directly inside of their web or mobile app.

Third Party Apps will integrate the Storecoin Wallet so each user account in the app has a crypto wallet. Apps can assign actions – or crypto-powered API calls – to micro-units of storecoins so each time a user takes an action, they earn the storecoin cryptocurrency. They can then exchange storecoins for other cryptocurrencies using a decentralized exchange. From there, they can move into cash/fiat.

Between the token layer and the app layer, there is a protocol-powered Wallet API allowing the Storecoin cryptocurrency to natively be distributed inside of third party apps (not dApps). Storecoin, Inc. develops and supports these Wallet APIs for third party developers.

A secure unit of value allowing the owner to access services and/or data from the Storecoin Blockchain.

The secure decentralized algorithm enabling new blocks of transactions to get created, confirmed, and added to the public blockchain.

A digitized, decentralized, public ledger containing the history of every Storecoin transaction.

Third Party Apps will integrate the Storecoin Wallet so each user account in the app has a crypto wallet. Apps can assign actions – or crypto-powered API calls – to micro-units of storecoins so each time a user takes an action, they earn the storecoin cryptocurrency. They can then exchange storecoins for other cryptocurrencies using a decentralized exchange. From there, they can move into cash/fiat.

Between the token layer and the app layer, there is a protocol-powered Wallet API allowing the Storecoin cryptocurrency to natively be distributed inside of third party apps (not dApps). Storecoin, Inc. develops and supports these Wallet APIs for third party developers.

A secure unit of value allowing the owner to access services and/or data from the Storecoin Blockchain.

The secure decentralized algorithm enabling new blocks of transactions to get created, confirmed, and added to the public blockchain.

A digitized, decentralized, public ledger containing the history of every Storecoin transaction.

How the Storecoin Wallet Works

Once Third Party Developers integrate the Storecoin Wallet into their apps, every user on their app can have a Storecoin wallet. Storecoin can even power fee-less payments inside of apps. Apps that build on top of Storecoin will be called crypto-powered apps – or cApps.

Wallet is business-model-as-a-service for Developers

How Storecoin Scales Globally

Why? Because governments around the world won't trade their finance and banking laws for the innovation potential of p2p payments.

With KYC/AML data for its decentralized workers, Storecoin software nodes will be regulatory-compliant on a country-by-country-basis giving the Storecoin blockchain a unique advantage to being embedded in traditional banking and financial infrastructure around the world.

How global KYC/AML compliance grows adoption

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The Storecoin Developer Ecosystem

A coalition of organizations that have entered into long-term relationships with Storecoin as its exclusive cryptocurrency to be integrated into enterprise and consumer-facing apps.

A PoW Blockchain Mining Operation & Test Network

SQL for Blockchains

The Storecoin Ecosystem Fund

Storecoin’s Ecosystem Fund will make equity-based investments into application-based companies that may be early Storecoin developers. From Storecoin’s 33% Incentivization Pool, developers will also be awarded STORE tokens to kickstart their Wallet networks. Storecoin can also airdrop tokens into the Wallets of users from its ecosystem funded companies, further growing the use of STORE.

As of September 4, 2017, we have concluded that, due to the changing regulatory environment in the People's Republic of China with respect to the distribution of cryptographic tokens generally, Storecoin will not sell tokens to residents of the People's Republic of China.

Although:

a) Storecoin Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the People's Republic of China (as amended).

b) The distribution of the Storecoin Tokens are not considered “illegal fundraising” as defined under the Criminal Law of the People's Republic of China (as amended).

c) Storecoin will comply with the amended Securities Law of China and prohibit residents of the PRC from purchasing Storecoin tokens. If a Chinese person does apply to purchase Storecoin Tokens, such person will not be approved by Storecoin, Inc.

If you are not a resident of the People's Republic of China, we encourage you to re-start the Second Token Sale invite process.

Please read the following before applying for our Second Token Sale:

#1 As a potential Storecoin Token Buyer, I understand that the purpose of the storecoins is to facilitate the provision, utility, and receipt of certain apps and services within a future Storecoin Blockchain.

#2 I understand that my purchase, ownership, receipt, or possession of Storecoin Tokens carry no rights, express or implied, other than the right to use Tokens as a means to enable usage of and interaction with Apps and Services enabled by the Storecoin blockchain, if successfully completed and deployed.

#3 I understand and accept that Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to a Storecoin blockchain, Storecoin, Inc, and its corporate affiliates, other than any rights relating to the provision and receipt of Services in the Storecoin blockchain or Storecoin app token.

#4 I also understand the Tokens are not intended to be a security, commodity, or any kind of financial instrument.

About Storecoin

Storecoin is a new public blockchain.

With its Dynamic Proof of Stake consensus protocol (DyPoS), Storecoin will deliver free transactions, high-throughput, dynamic economics, decentralized security, and a governance system with built-in checks and balances inspired by the United States Constitution.

Storecoin will become the best digital asset for delivering free, fast, and scalable payments.

Our team has the key insights and experiences in scaling large distributed systems, blockchain technology, token economics, and Governance to succeed.

We have offices in Silicon Valley, South America, Europe, and Asia. We have team members working 24-hours per day, all around the globe.

About Dynamic Proof of Stake

Dynamic Proof of Stake (DyPoS) is the decentralized consensus algorithm invented by Storecoin Inc. to keep transactions free for users.

DyPoS is inspired by the supply and demand principles of Uber Surge Pricing (blockchain economics), checks and balances of the U.S. Constitution (governance), and an encrypted Power of Attorney (scaling).

With DyPoS, Storecoin will bring crypto-powered API calls to app developers around the world.

Dynamic (free) Transactions

Dynamic Validation

Dynamic Block Rewards

Dynamic Security

Dynamic Scaling

Dynamic Governance

We’ve thought deeply about how to incentivize network effects on a new blockchain.

Here’s how Storecoins will be allocated:

33% will be sold in up to six mini token sales to fund protocol development

7% was sold in our First Token Sale in Fall 2017

33% will be allocated to founders and team

Founders have 4 year vesting

Contributors have 2 year vesting

33% will be allocated to incentivize participation in the Storecoin ecosystem

This includes third party developers for the Storecoin blockchain, enterprise organizations who adopt the Storecoin Wallet and integrate storecoin tokens into their enterprise apps, early Validators, early Security Guards, Distribution partners, and future M&A

All incentive-based partners have 4 year vesting

Validators of the Storecoin blockchain have 1 year vesting for their block rewards

Storecoin will only sale up 33% of tokens to the public.

In our Invite-only First Token Sale, 70 Million storecoins, or 7% of all tokens, were sold.

In our Second Token Sale, 30 Million storecoins, or 3% of all tokens total, will be sold to invited and approved buyers. The price per token is $0.0333. Invites to participate will be sent starting December 2017.

Our Second Token Sale will give Storecoin $1 Million in capital to make key hires in blockchain engineering and blockchain security. This enables the project to finish its test network for Dynamic Scaling, Dynamic Validation, and Dynamic (Free Transactions). The output of this sale will be Storecoin releasing its Scaling Paper and its Economics Paper.

Storecoin Token Buyers will receive their tokens as early as 2019.

Storecoin, Inc. will issue buyers either:

ERC20 tokens (that may convert into Storecoin blockchain tokens in the future)

Tokens from the Storecoin blockchain

Tokens from another blockchain such as EOS

The minimum purchase amount in our Second Token Sale is $5,000 USD.

You can buy storecoins through USD Check, USD Wire, Bitcoin and Ethereum.

As of today, this $5,000 USD minimum Storecoin token buy equals:

Ethereum

Bitcoin

Storecoin vs. Other Public Blockchains

What it would cost to buy 1 one-hundredth of a percent (1 basis point) of all tokens minted in the first 10 years for major public blockchains (see footnotes for price assumptions).

The ZCash price of $529 is a snapshot of the price as of December 17th, 2017. The "Filecoin (first hour)" price of $2.25 factors in a 15% discount off of $2.65 (the price during the first hour of the sale) as a result of the 2-year unlocking option. The Tezos price of $0.39 is the effective price paid on the first day of the main sale, taking into account the 20% bonus and an average Bitcoin price of $2,350 on July 1. The EOS price of $8.44 is based on the pre-launch trading price on December 17th, 2017. EOS was assumed to have 5% annual inflation starting at 1 billion tokens.

Do you want to participate in the Storecoin Second Token Sale?

Yes

No

Will you be participating on behalf of yourself or another organization/entity?

As a future Storecoin token owner, would you be interested in earning extra storecoins by staking your tokens for 3+ months to help Validate our future decentralized blockchain consensus? This would make you a founding Validator (miner) for Storecoin. After six months of actively validating, you'd have a vote in Governance, too. You can also apply directly here.

Yes

No

Maybe, send me more information

As a future Storecoin token owner, would you be interested in earning storecoins by helping Secure our blockchain? This would make you a founding Decentralized Security Guard (dGuard). After three months of actively Securing, you'd have a vote in Governance, too. Requirements are experiences in fraud detection, information security, and related fields. You can also apply directly here.

Yes

No

Maybe, send me more information

Thanks for applying to participate in the Storecoin Second Token Sale.

Our team will review your application. Once approved, we'll email you a Token Sale agreement to e-sign and then fund. You'll have 48 hours to fund the contract before your invite expires.

Nothing herein is intended to be an offer to sell or solicitation of offer to buy, Storecoin tokens or rights to receive Storecoin tokens in the future. In the event that Storecoin conducts an offering of Storecoin tokens (or rights to receive Storecoin tokens in the future), Storecoin will do so in compliance with all applicable laws which may include the Securities Act of 1933 and the rules and regulations promulgated thereunder, as well as applicable state and foreign law. Any offering for sale to US Persons in a regulated transaction will be pursuant to a registration statement qualified by the Securities and Exchange Commission, or an applicable exemption from the registration requirements.